By Jaewon Kang | Bloomberg
Walmart is offering used watches and trading cards on its online marketplace. The retailer wants to further expand its e-commerce business and steal more sales from its competitors such as eBay and Amazon.com.
The company is expanding the assortment on its marketplace, which offers goods from third-party sellers, to meet customer demand, said Tom Ward, Walmart’s e-commerce chief. The new categories, which also include high-end beauty products, collectibles and other used products, will help Walmart expand its customer base and drive growth, he said.
That contributes to Walmart’s appeal, he said: “When they see a brand they weren’t expecting, or when they search for something they’re interested in, they find not just a few results, but hundreds of thousands.”
The marketplace is driving growth in Walmart’s e-commerce business. The Bentonville, Arkansas-based company said in August that its online sales in the U.S. rose 22% last quarter. The number of weekly active customers is also rising and consumers are increasingly paying for faster delivery. The company is working to reduce costs associated with e-commerce and has assured investors that there is a path to profitability.
Marketplaces help Walmart and its competitors appeal to online customers by expanding their product range and price points. Companies can also increase revenue through related services such as advertising and fulfillment. For retailers who primarily operate in brick-and-mortar stores, marketplaces can also serve as a place to try out new products or products from emerging brands.
The strategies of the major retailers vary: Amazon, whose marketplace is more than twenty years old, sells a wide range of products, including used items and collectibles. Target Corp., which merged with Shopify Inc. earlier this year, takes a more curated, selective approach.
Walmart said sales on the marketplace have increased by more than 30 percent for four consecutive quarters. The total number of sellers on the platform, which the company does not disclose, has grown by double digits. Some categories, such as pet products and beauty products, are seeing annual growth rates of 20 to 30 percent.
Related: Walmart sales rise as wealthier shoppers flock to retailer
The marketplace has particularly bolstered Walmart’s offering of everyday goods such as home accessories and apparel. The company now also offers brands it doesn’t normally sell, from Cartier to Michael Kors. Michael Kors handbags were among the top sellers on the marketplace last holiday season, executives said during Walmart’s annual shareholder week in June.
Consumers are increasingly seeking out refurbished electronics as they seek more sustainable and budget-conscious options, Manish Joneja, senior vice president of Walmart Marketplace and Walmart Fulfillment Services, said in a call with reporters. The company plans to take additional steps to verify sellers. It will also capitalize on the craze for collectibles by offering pre-orders, he added.
Walmart is also introducing new offerings for its fulfillment services business, which charges sellers to store and ship products at its distribution centers. Sellers can now ship to customers through its fulfillment services, even if the order originates from another website. The company will also handle transportation of goods from Asia to the U.S.
Walmart is promoting its marketplace to sellers at a summit in San Francisco this week.
